For the 2019-20 sugar season, government had fixed a target of producing 2.60 billion litres of ethanol.
Under the scheme, the government has extended twice the interest subvention that comes up to Rs 4,600 crore for a loan amount of Rs 22,000 crore
Apart from the reduction of imports, the 2G ethanol usage in petrol helps reduce greenhouse gas emissions and also provides additional income to farmers.
He also said there is a greater need for developing flexi sugar factories producing sugar and ethanol as per relative economics and market demand
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In order to encourage mills to divert sugarcane to produce ethanol in the interest of farmers and sugar industry, soft loans of Rs 18,600 crore are being extended through banks to 362 projects
Move will lead to use of part of a stockpile of 30.57 million tonnes, which is almost 126% more than the buffer stock and strategic requirement norms
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So far, lower cane availability has impacted ethanol supply for blending with petrol
The policy, which could be a viable and long-term answer to the cyclicality in the sugar sector
The Uttar Pradesh government recently announced a further increase in the quota of molasses that needs to be supplied to liquor makers to 18% of total state output from 16%.
The present biofuel policy is invitation to ecological disaster
Environment Ministry said mills were expected to undertake production of ethanol from B-heavy molasses
The 2019-20 sugar season starts from next month and the peak crushing will happen in the first five-six months
Storage issues, financial health of mills are seen as some of the immediate impediments to the process
According to the new rules, the price of ethanol derived from C heavy molasses has been increased from Rs 43.46 a litre to Rs 43.75 per litre
The decision was taken by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here